Alphabet reported Google Cloud revenue o $7.454 billion for Q1, up from $5.821 billion. Google Cloud delivered operating income of $191 million for Q1, up from a loss of $706 million for the same period a year earlier.
Alphabet also noted that it has completed an assessment of the useful lives of its servers and network equipment. The estimated useful life of servers has been extended from four years to six years and the estimated useful life of certain network equipment from five years to six years. This change in accounting estimate was effective beginning in fiscal year 2023 and the effect for the three months ended March 31, 2023 was a reduction in depreciation expense of $988 million and an increase in net income of $770 million, or $0.06 per basic and $0.06 per diluted share.
